Gisborne's White Heron could fly higher

The single-level White Heron Motor Lodge is set on a large 3036sq m site with excellent profile to busy Gladstone Rd and good accessibility. Photo / Supplied

The lease for the popular White Heron Motor Lodge in Gladstone Rd, Gisborne, is being offered for sale by Karen Raureti and Colin McNab of Bayleys Gisborne who are marketing the property with an asking price of $880,000 plus GST if any.

"This presents a real opportunity for savvy owner-operators to pick up the reins and take a hands-on approach to elevate this successful business to a new level," says McNab.

"The term of the standard motel lease was recently extended to September 30, 2034, but after 16 years as working moteliers, the current holders of the lease are now looking to exit Gisborne to be closer to their children."

McNab says the motor lodge at 474 Gladstone Rd, the city's main arterial route, has been operated under management for the past four years.

"The motor lodge has 24 units, giving an operator economies of scale to allow the option of contracting staff and relieving management in order to maintain a lifestyle.

"The 2010 financial accounts for the business show continued strong comparable trading and occupancy levels. However, an owner-operator model of business management could clearly improve the bottom line as costs can be substantially reduced. Staff costs and maintenance work that is at present contracted out can be brought back 'in house', for example."

Built in late 1994, the single-level White Heron Motor Lodge is set on a large 3036sq m site with excellent profile to busy Gladstone Rd and good accessibility.

The building configuration provides a U-shaped access/egress area with well-established plantings, cobblestone paving and lawns. The manager's residence and motel reception/service areas are located to the front and centre of the site with an L-shaped accommodation building to the western and southern boundaries and five more units on the eastern boundary.

The units comprise an accommodation mix of 17 studios, plus four 1-bedroom and three 2-bedroom units. A three-bedroom manager's residence has an adjoining reception/office area, commercial kitchen, motel laundry with commercial washers and dryers, storage area plus a separately accessed staff room, guest laundry and storeroom.

Raureti says the units have proved popular with families, commercial travellers, sports and conference groups and travellers with the larger of the two 2-bedroom units often used as a compact conference facility or training room adding another dimension.

"Gisborne has always enjoyed good accommodation trade from company reps in particular as it's not a city they can just pass through if they're on business," Raureti says.

The studios are 34.5sq m in size, making them larger-than-average for motel complexes and they include combined living/sleeping space, kitchen facilities and spa baths or separate showers. Two of these studios are wheelchair-friendly with bathrooms having curtained shower areas.

The one-bedroom units have an internal area of approximately 47sq m - again larger than average - with a double bedroom and bathroom with spa bath while the three 2-bedroom units have two separate bedrooms and one has a spa bath.

"The units are all presented well but there are funds put aside in a maintenance account for a new owner to refurbish the interiors should they feel it necessary," says McNab. "The exterior of the buildings were recently repainted and will require only modest upkeep over coming years."

The property holds a liquor licence to allow in-room mini bars and to cater for on-site conferences.

The present owners plan to remain in Gisborne for the short-term, so will be on hand to offer assistance to a new owner.

The Gisborne region has a number of large events planned over the next couple of years. "Gisborne will be hosting Namibia during the 2011 Rugby World Cup and with the French team playing in Napier it is hoped that Gisborne will be on the travel itinerary of many supporters spending time on the East Coast," says McNab.

The Te Matatini National Kapa Haka Festival will be held in Gisborne in February 2011 and January is usually busy thanks to the general summer influx of holidaymakers and the increasingly popular Rhythm and Vines festival.